Underwritten premiums on the general insurance segment had fallen by 9% in the first quarter of 2011, at a faster pace than last year, when the decline had reached 7.5%.

“The general insurance market will drop further this year, and underwritten premiums will decrease by 7% to 10%. There are quite small chances of a significant market decline slowdown in the second half of the year, but should economic conditions improve we could eventually speak of a slower decrease,” said Radu Mustatea, chairman of the board of Astra, a top insurer.

Rangam Bir, head of Allianz-Tiriac, is reluctant to provide any forecast on the market’s trend in 2011, but says hopes are pinned on a car market rebound.

Insurers are still cautious in their forecasts, even though some of them believe their turnover posted a slight recovery compared to the first quarter.

“(…) I’m still cautious about short-term recovery outlooks,” says Adrian Marin, deputy general manager of Generali, a top ten insurer.

He expects the general insurance segment will fall by 5% in 2011.

Alin Bucsa, general manager of Euroins, sees a 5% to 7% decline in general insurance sales.